Centre puts the ball in states court for factories act amendment
With labour law reforms back on the Centre’s agenda, fresh discussions begin with trade unions to push through a long-pending overhaul of the Factories Act of 1948.
However, the Labour Ministry has tweaked its draft amendments to put the ball on contentious issues in the domain of State governments.
Instead of increasing the threshold limit set for the number of workers in an industrial unit to be statutorily covered by the factories law.
Centre is now proposing an enabling provision that lets State governments decide the threshold over which a unit will be considered a factory for the purpose of the law.
Earlier, the Centre had proposed that the Factories Law be applicable to all factories that employ at least 40 workers – a move that was strongly opposed by the central trade unions.
The present Factories Act 1948 applies to establishments with 10 or more workers, if the premise is using power and to establishments with 20 or more workers, without electricity connection.
Factories with less than 40 workers were to be covered under a new law for small factories. However, the fate of the proposed Small Factories Bill, 2015 is unclear as the Labour Ministry note has no mention about the proposed law.
About Current Affairs Only
Current Affairs Only (CAO) @ currentaffairsonly.com is an educational website providing valuable, convenient, relevant and enjoyable online education relating to Current Affairs to students, aspirants and general public through a diversity of services. Our daily updates covers the current affairs and conventional subjects..